Ahead of the Curve

The lending environment is undergoing a worrying change. Funds that European direct lenders have raised but not yet deployed are at an all-time high and banks in most Western-European jurisdictions have renewed lending following years of reticence after the global financial crisis, leading to increased competition amongst lenders in the small and medium enterprise (SME) market.

Dutch broadcaster demands SRI

NETHERLANDS - Llink, the smallest Dutch broadcaster, has announced it will leave the industry-wide pension fund PNO Media if the scheme doesn't change its investment policy.

Both the executive board and the employees of Llink don't agree with the scheme's investment strategy, as it does not meet criteria of social responsibility, the broadcaster claims.

"Arms trade, degrading labour conditions and companies which cause extraordinary pollution don't fit within PNO Media's code of social responsible investment," it said in a statement.

Llink has made its move in response to recent revelations PNO Media still invests in controversial companies, such as China Coal Energy, and the defence contractors BAE Systems and Halliburton.

"Despite the scheme's earlier assurance it would not do so, further research has shown that it does invest in unacceptable companies. If PNO Media doesn't adhere to its own code very soon, Llink will try everything possible to place its assets with an organisation that really invests in a socially-responsible way," it said.

Llink is a recently-founded broadcaster with 35 employees and idealistic principles, aimed at contributing to a ‘fair and sustainable world'.

Nobody was available for comment at the €2.5bn industry-wide PNO Media scheme.

Its code for social responsible investment says the scheme wishes to take into account society's morals and standards on "systematic abuse of human rights, labour conditions and damage to the environment".

According to its latest annual report, PNO Media pension fund covers 345 companies in the broadcasting sector, with 15,350 participants in total. The combined numbers of deferred members and pensioners are 10,700 and 5,500 respectively.